How to Know What Price To Charge with Cactus Raazi #380

How do you know what price to charge? How much is too much and how much is too little? Are you leaving money on the table? Setting prices for your products is one of the most important business decisions you’ll make.

In this episode pricing expert and author Cactus Raazi shares what to keep in mind when deciding what to charge. With his simple pricing strategy, you can discern tactics that will award loyal customers and grow your bottom line.

Not One Price to Charge, Many Prices

Most companies use pricing approaches developed before the internet, failing to harness modern analytics. Your customer relationships vary widely; shouldn’t each customer’s loyalty to your product or service be reflected in their price? Why charge everyone the same? Intelligent pricing makes better sense,

Secondly, Cactus shared in this age of increasing price transparency, uniform pricing is no longer sufficient. The best way forward is to create personalized pricing for your loyal customers and resist the constant discounting pressure of internet price aggregation.

Price Tactics

In Price, Cactus Raazi provides guidance on building a pricing strategy that works for any organization:

1. Start by collecting key data on existing clients. Possible KPIs include:
  - industry
  - product set
  - value
  - mission critical
  - historical purchasing
  - urgency
  - longevity
2. Analyze the data and delineate your ideal clients
3. Build a two tier pricing structure: One for loyal clients, one for new
4. Keep collecting data and repeat

Given that price transparency and aggressive discounting is here to stay, now is the time to refocus your pricing approach on your individual customer.

Take Action Advice on What Price to Charge

Take a risk and charge more! Don’t be a wimp and fear over charging. Your company has earned the value to provides.

How To Find Cactus Raazi

- This is a link to the book “Price” on Amazon
- Here he is on LinkedIn

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